law presntn

8/7/2019 law presntn

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´CONTRACTµ

A n agreement enforceable by

law is a CONTR A CT.



DISCHARGE OF CONTRACT

When an agreement, which was binding on

the parties to it, ceases to bind them, the

contract is said to be discharged.

Termination of contractual relations

between parties.

The rights and obligations of parties

under the contract have come to an end.



MODE OF DISCH A RGE

A contract may be discharged in thefollowing ways:

1. By Performance of the contract

2. By breach of the contract

3. By Frustration

4. By Agreement



1. DISCHARGE BY PERFORMANCE

Under a contract each party is bound to

perform his part of the obligation. After

the parties have made due performanceof the contract, their liability under the

contract comes to an end. In such a case

the contract is said to be discharged by

performance.



DISCH A RGE BY BRE A CH OF CONTR A CT

When a party having a duty to perform a contractfails to do that, or does an act whereby theperformance of the contract by him becomesimpossible, or he refuses to perform the contract,

there is said to be a breach of contract on hispart.

For example, A is to supply certain goods to B on1st January. On 1st January A does not supplythe goods. He has made actual breach of contract.

On the other hand, if A informs B on 1stDecember that he will not perform the contracton 1st January next, A has made anticipatorybreach of contract.

Cort vs ambergate



DISCH A RGE BY A GREEMENT

When all the parties to the contract

mutually agree to cancel their

obligations arising out of a contract.

It can be discharged by the agreement of the

parties to the contract in the following ways:

1)Novation 2)Rescission

3) A lteration

4)Remission



NOV A TION

It means creation of a new contract

for the original contract.

Such contract may be either betweenthe same parties or different parties.



RESCISSION

It means cancellation of the contract

by any party or all the parties to a

contract.



ALTER A TION

A lteration means a change in the

terms of a contract with the mutual

consent of the parties. It discharges

the original contract and creates new

contract. However, the parties to the

contract does not change.



DISCH A RGE BY FRUSTR A TION

When subsequent to the formation of

any contract, any unforeseen event

happens rendering the performance

impossible, the contract is discharged

by frustration(T aylor Vs. Caldwell)



BRE A CH OF CONTR A CT

It occurs if any party refuses or fails

to perform his part of the contract or

by his act makes it impossible to

perform his obligation under the

contract.



REMEDIES A V A ILA BLE IN C A SE OF BRE A CH

In case a party denies to perform his or

her obligations, the aggrieved party may

move to court demanding the

compensation

Compensation will be for the loss or

damage caused due to the breach of the

contract



LIQUID A TED D A M A GES:

Contracts provide the damages to be paid by theother party in case of breach of the contract.

The amount provided is called liquidated damages.

Liquidated damages is awarded by courts.

If the actual damage suffered by the party issignificantly less than liquidated damages orliquidated damages are not pre-estimate of losses, the courts award only the actual damages.



L A W OF COMPENS A TION:

Compensation is the governing principle in

contract law remedies.

The principle for compensating is, as far asmoney can do, put the parties in a situation they

would have been if the contract had been

performed.

Compensation for mental agony, due to breach of

contract, is not awarded by the courts.

(ghaziabad development authority v union of india)



TH A NK YOU«

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